Establishing that a conduit debt obligation is a liability of the third-party obligor; therefore an issuer would not recognize a conduit debt obligation as a liability, which currently is allowed under GASB Interpretation No. 2, Disclosure of Conduit Debt Obligations.

Establishing standards for accounting and financial reporting of additional commitments extended by issuers and arrangements (often characterized in practice as leases) associated with conduit debt obligations.

Requiring issuers to disclose general information about their conduit debt obligations. Issuers that recognize liabilities related to conduit debt obligations also would disclose information about the amount recognized and how the liabilities change during the reporting period.

If finalized, the new guidance would be effective for reporting periods beginning after December 15, 2020. The Exposure Draft is available for comment until November 2, 2018.

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